First a quick explanation of what term life insurance is. If you already know this and just want to find out how much it costs, scroll down a bit.
Term life insurance is a type of life insurance that is purchased for a limited time period or "term". Term life insurance is usually purchased for 5, 10, 15 or 20-year periods, although other time increments may be available. Because a term life insurance policy is only valid for the amount of time for which it was purchased, life insurance companies often offer lower premiums on term life insurance compared to other life insurance options. And, the premiums are almost always fixed. Premiums might go up or down during the term of the life insurance policy, but they will never exceed the limits agreed upon when the policy was first taken out.
Many people choose to purchase term life insurance during specific times in their lives when extra life insurance is necessary. For example, when raising young children, term life insurance can provide extra financial protection in the event that a parent passes away. Some people choose to purchase term life insurance to correspond with major financial obligations, such as a mortgage or other loan. If both spouses have a large mortgage or loan, and the primary breadwinner dies before the loan is paid off, a term life insurance policy can help ensure that the surviving spouse isn't burdened by debt.
Your life insurance agent almost certainly has a chart somewhere that determines your term life insurance premium. In their wisdom, life insurance bigwigs systematically determine what the term life insurance premiums need to be in order for the insurance company to turn a profit, and still be able to pay out insurance policies when people die. This is all based on statistical risk, and there are a few main factors that determine your risk and therefore what you'll pay for term life insurance:
The fourth factor in the cost of your term life insurance is, as you might expect, the dollar amount of coverage. Life insurance is often available in amounts of $250,000; $500,000; or $1,000,000.
The only way to know precisely what term life insurance will cost you is to get a quote. For fast quotes from a wide range of companies, enter your zip code in the search box above. To give you a rough idea of the cost, here are some sample insurance premiums -- please note these are rough averages only, and your quote may differ:
Sample (Estimated) Term Life Cost Chart
Age 30, 10-year $250,000 policy: $135-$170 per year
Age 30, 20-year $250,000 policy: $185-$225 per year
Age 30, 20-year $500,000 policy: $275-$325 per year
Age 30, 20-year $1,000,000 policy: $390-$450 per year
Age 40, 10-year $250,000 policy: $150-$200 per year
Age 40, 20-year $250,000 policy: $215-$255 per year
Age 40, 20-year $500,000 policy: $325-$375 per year
Age 40, 20-year $1,000,000 policy: $530-$610 per year
Age 50, 10-year $250,000 policy: $270-$315 per year
Age 50, 20-year $250,000 policy: $400-$500 per year
Age 50, 20-year $500,000 policy: $700-$900 per year
Age 50, 20-year $1,000,000 policy: $1400-$1500 per year